Financial services company SouthState Corp. (SSB) announced Monday an agreement to acquire Independent Bank Group, Inc. (IBTX) in an all-stock transaction valued at around $2 billion.
In pre-market activity on the Nasdaq, IBTX shares were gaining around 5 percent, to trade at $46.10.
Subject to the terms of the definitive deal, each Independent Bank shareholders will receive 0.60 shares of SouthState stock. Based on SouthState's closing stock price of $80.85 as of May 17, this equates to a per share value of $48.51.
The transaction was approved by the boards of directors of SouthState and Independent Bank. Completion of the deal, subject to customary closing conditions and required regulatory approvals, is expected by the end of the first quarter of 2025.
McKinney, Texas-based Independent Bank has around $18.9 billion in total assets, $15.7 billion in total deposits and $14.6 billion in total loans as of March 31. The bank operates in four market regions located in Dallas/Fort Worth, Austin and Houston areas in Texas and the Colorado Front Range.
South State said the combined company will have pro forma total assets of $65 billion, deposits of $55 billion, and gross loans of $48 billion upon the deal closure. It will have presence in 12 of the 15 fastest growing MSAs in the United States.
The combined company will have a market capitalization of around $8.2 billion, based on the closing stock price of SouthState as of May 17.
Upon the completion of the transaction, three Independent Bank Group directors, including Chairman and CEO David Brooks and Lead Independent Director G. Stacy Smith, will join both the SouthState Corp. board and the SouthState Bank board.
Brooks said, "We are excited about the opportunity to join SouthState, a company whose culture, business model and credit discipline matches well with ours. The combination of these two companies operating in growing markets provides a great opportunity for our Independent Bank Group teammates, clients and communities to flourish."
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